Rbi Moves Keep Re At 35.87, Forwards Soft

FOREX REPORT

Central Bank intervention in the forex market in favour of the dollar saw the rupee close at 35.87-875 against the American unit.

Forward premiums, meanwhile, continued to remain soft with the six-month annualised premium closing at 6.67 per cent.

The rupee opened at 35.86-87. However, there were strong supplies in the market reportedly from foreign institutional investors. This caused the rupee to steadily appreciate to 35.84-85. At 2:30 pm, the RBI entered the market aggressively purchasing the spot dollar. Its purchases are estimated at $ 100 million. This supported the dollar and the rupee slipped to close levels. The cash-tom was 0/1, tom-spot was 0/.5, and the cash-spot was 0/.75 paise.

 

The forward segment was relatively quiet and premiums continued to dip by two to three paise across the board. There was some paying for the far forwards. The RBI did not enter the forward market. Monthly premiums in paise were 8-11 for April, 28-31 for May, 50-53 for June, 73-76 for July, 96-99 for August, 116-119 for September, and 136-139 for October. The one year premiums were 239-249 paise.

Overseas, the dollar weakened slightly against other major currencies. The international markets remained quiet in anticipation of the visit of the American finance secretary to Japan to discuss the trade surplus issue. The rupee closed at 58.82 against the pound, 21.48 against the mark, and 28.92 per 100 yen.